What is the Employment Rights Act?
The Employment Rights Act represents a major set of updates to UK employment law designed to strengthen protections for workers and modernise workplace rights.
The reforms will be introduced in phases over several years, with some measures already in place and further changes scheduled to take effect from April 2026. Many of the updates focus on improving family-friendly workplace policies, strengthening employee protections, and increasing the effectiveness of enforcement across the labour market.
For businesses, these developments highlight the importance of reviewing internal policies, contracts and HR practices to ensure they remain compliant as the legislation is rolled out.
What Changes Will Come into Effect on 1st April?
A number of key provisions are expected to come into force in April 2026. These include:
Day-one access to certain family leave rights
Employees will be able to access paternity leave and unpaid parental leave from the first day of employment, removing the previous minimum service requirements.
Changes to Statutory Sick Pay (SSP)
Statutory Sick Pay will become payable from the first day of illness rather than after a waiting period, and eligibility will be expanded so that more workers are able to receive support.
Enhanced whistleblowing protections
Sexual harassment will be recognised within whistleblowing legislation as a protected disclosure, strengthening safeguards for individuals who raise concerns.
Increased penalties for redundancy consultation failures
Employers who fail to properly consult staff during collective redundancy processes may face higher penalties, with the maximum protective award increasing to 180 days’ pay.
Introduction of a Fair Work Agency
A new enforcement body, the Fair Work Agency, will be created to bring together the oversight of several workplace rights and improve enforcement across the labour market.
What Further Changes Are Anticipated?
The Employment Rights Act is expected to continue developing over the coming years, with further reforms likely to be introduced through secondary legislation and government consultations.
These future measures may address areas such as employment status, protections for workers on insecure contracts, and wider workplace rights.
As consultations take place and additional details emerge, we will share updates and guidance through our daily e-newsletter, Greater Birmingham Business News, to help businesses stay informed and prepared for upcoming changes.
Access Support
Businesses looking for further guidance on the Employment Rights Act can access support and resources from the British Chambers of Commerce (BCC).
The BCC provides updates, guidance and practical information to help employers understand the changes and prepare for implementation.
You can access the available resources here:
https://www.britishchambers.org.uk/policy-campaigns/future-of-work/our-solutions/employment-rights-act-support-2/
Supporting resources
